Investment Review - March 2025
- After a positive start to the year, stocks pulled back in the month of February as a barrage of announcements and initiatives from the Trump administration have caused investors to pause. The S&P 500 declined -1.4%, the Dow Jones Industrials fell -1.6%, and the Nasdaq Composite lost -3.9%. While the S&P and Dow Jones still show gains for the year, the Nasdaq has moved into negative territory as technology stocks have seen some profit taking after recent strong gains.
- Earnings estimates for the eleven sectors of the S&P 500 forecast that earnings growth will accelerate for the majority of the market. Ten of the eleven sectors, representing approximately 67% of the index, are expected to see earnings growth accelerate this year. Earnings for the S&P 500 index are expected to grow 12% in 2025.
- Bond prices rose, and yields declined in February. Fixed income investors were comforted by the positive inflation data, but they also may have been assessing the impact on the economy from the Trump administration’s policy initiatives. U.S. Treasury securities are viewed as a safe haven.
Key Investment Statistics
Sources: FactSet, Dow Jones Publishing, Bloomberg, Bureau of Labor Statistics, U.S. Federal Reserve, Yardeni Research
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
For more information, call 617-557-9800, or email info@welchforbes.com.